Group 1 - The article focuses on analyzing oil and gas companies, specifically highlighting HighPeak Energy and its valuation within the industry [1] - The analysis includes a breakdown of essential factors such as balance sheets, competitive positioning, and development prospects of the companies [1] - The service provided offers exclusive insights and analysis to members, which are not available on the free site [1] Group 2 - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] - The author has extensive experience in the industry, holding qualifications such as an MBA and MA, along with a background as a CPA [2]

Core Viewpoint - HighPeak Energy, Inc. (HPK) is experiencing significant selling pressure, with a 17.8% decline over the past four weeks, but is now positioned for a potential trend reversal due to being in oversold territory and positive earnings outlook from analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 indicating a stock is oversold [2]. - HPK's current RSI reading is 28.89, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that HPK will report better earnings than previously predicted, leading to a 6.1% increase in the consensus EPS estimate over the last 30 days [7]. - HPK holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8].

Group 1 - HighPeak Energy (NASDAQ: HPK) reported an 11% drop in Q2 2025 oil production compared to Q1 2025, attributed to the timing of wells coming online and slowed development activity due to oil prices in the $60s [2] - The decline in production indicates potential challenges for HighPeak Energy in maintaining output levels amidst fluctuating oil prices [2] - The company is part of a broader focus on value opportunities and distressed plays within the energy sector, as highlighted by the investment group Distressed Value Investing [2] Group 2 - The article emphasizes the importance of analytical experience in evaluating investment opportunities, particularly in the energy sector [2] - The author, Aaron Chow, has over 15 years of analytical experience and previously co-founded a mobile gaming company, showcasing a diverse background that may influence investment strategies [2] - The investment group Distressed Value Investing aims to provide exclusive research and insights into various companies, indicating a commitment to thorough analysis in the energy market [1][2]

Financial Data and Key Metrics Changes - The company reported EBITDAX of over $155 million for the quarter, with margins remaining strong at $33.58 per barrel of oil equivalent despite lower commodity prices [5][6][27] - Capital expenditures (CapEx) for the second quarter were 30% lower than the first quarter, aligning with the company's internal expectations [5][15] Business Line Data and Key Metrics Changes - The company reduced its drilling activity to one rig in mid-May, which impacted production levels but was a strategic decision to manage capital effectively [5][15] - The first simulfrac job was completed successfully, resulting in savings of approximately $400,000 per well, which is about a 10% reduction in total completion costs [19][20] Market Data and Key Metrics Changes - The company has hedged over 50% of its volumes for the second half of the year with a weighted average floor price of over $62 per barrel [12][13] - Approximately 90% of the second half 2025 gas volumes are hedged at a price of $4.43 per MMBtu [13] Company Strategy and Development Direction - The company aims to maintain capital discipline and flexibility in its operations, with plans to add a second rig in September while monitoring market conditions [15][26] - The recent refinancing of the term loan and revolving credit facility has solidified the company's credit profile and extended debt maturities to September 2028 [7][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production guidance for 2025 despite fluctuations in quarterly volumes due to the timing of well completions [5][42] - The company remains focused on long-term value creation and is prepared to adapt its development plans based on market conditions [26][28] Other Important Information - The company's solar farm has generated significant power savings and reduced CO2 emissions, contributing to its sustainability goals [22] - The company is exploring hybrid simulfrac operations to increase efficiency in completions [38] Q&A Session Summary Question: How much liquidity does the company want to maintain? - The company aims to maintain a liquidity level of $200 million to $250 million, depending on oil prices and hedging strategies [30][31] Question: Can you explain the swings in working capital changes? - The changes in working capital were due to reducing from two rigs to one, with expectations for stability in the third quarter and potential increases as a second rig is added [32][34] Question: Are there any limiting factors on using simulfrac for more completions? - The ability to use simulfrac is influenced by the number of wells on a pad and the current rig count, but the company is exploring ways to implement it more broadly [36][38] Question: How does the inventory of wells in progress affect the decision to add a second rig? - The current inventory of 20 wells is manageable with one rig, but the company will monitor the situation as it progresses [39] Question: What impact will the Middle Spraberry inventory have on year-end reserves? - The company anticipates a significant increase in PUDs associated with Middle Spraberry wells by the end of 2025 compared to 2024 [40][41] Question: What are the production expectations for the next couple of quarters? - Production may fluctuate due to the timing of well completions, but the yearly guidance remains solid [42]

Financial Performance & Position - HighPeak Energy reported Q2 2025 production of 48600 barrels of oil equivalent per day (MBoe/d)[14] - The company's Q2 2025 unhedged EBITDAX per BOE was $3358[14] - Q2 2025 EBITDAX totaled $156 million[14] - As of June 30, 2025, the company's pro forma total debt was $12 billion, with a net debt of $1032 billion[16] - The company's total liquidity stood at $268 million, including $168 million in cash and cash equivalents[16] Debt & Hedging - HighPeak Energy extended its Term Loan and Revolving Credit Facility maturities to September 2028 and upsized the Term Loan to $12 billion[21] - Approximately 53% of the company's oil volumes and 89% of gas volumes are hedged for the second half of 2025[25] Operational Efficiency - The company achieved savings of approximately $400000 per well by using Lorin Pad Simulfrac[29] - Simulfrac savings led to a 10% reduction in completion costs[30] - Solar savings from June to December 2024 amounted to $809487, with a CO2 reduction of 4616 metric tons[34] Asset Base - HighPeak Energy has over 143000 net acres[14,35] - The company has over 1000 sub $50/Bbl break-even locations in primary zones[14,35]

Core Insights - HighPeak Energy, Inc. reported quarterly earnings of $0.1 per share, missing the Zacks Consensus Estimate of $0.12 per share, and down from $0.28 per share a year ago, representing an earnings surprise of -16.67% [1] - The company posted revenues of $200.4 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 5.28%, and down from $275.27 million year-over-year [2] - HighPeak Energy shares have declined approximately 40.4% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $209.49 million, and for the current fiscal year, it is $0.69 on revenues of $885.36 million [7] - The estimate revisions trend for HighPeak Energy was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently in the bottom 36% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

[PART I. FINANCIAL INFORMATION](index=10&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the company's unaudited condensed consolidated financial statements for the quarterly period ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to $3.09 billion, while total liabilities decreased to $1.44 billion as of June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $21,853 | $86,649 | | Total current assets | $122,216 | $195,012 | | Total crude oil and natural gas properties, net | $2,943,774 | $2,845,729 | | **Total assets** | **$3,089,453** | **$3,063,288** | | **Liabilities & Equity** | | | | Total current liabilities | $140,685 | $284,630 | | Long-term debt, net | $1,027,354 | $928,384 | | **Total liabilities** | **$1,435,367** | **$1,460,832** | | **Total stockholders' equity** | **$1,654,086** | **$1,602,456** | [Condensed Consolidated Statements of Operations](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income for Q2 2025 decreased to $26.2 million from $29.7 million year-over-year, driven by lower operating revenues Key Performance Indicators - Three Months Ended June 30 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total operating revenues | $200,400 | $275,266 | | Income from operations | $43,444 | $87,260 | | Gain (loss) on derivative instruments, net | $26,446 | $(2,702) | | Net income | $26,176 | $29,717 | | Diluted EPS | $0.19 | $0.21 | Key Performance Indicators - Six Months Ended June 30 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total operating revenues | $457,848 | $563,030 | | Income from operations | $133,823 | $190,280 | | Gain (loss) on derivative instruments, net | $18,519 | $(55,745) | | Net income | $62,511 | $36,155 | | Diluted EPS | $0.45 | $0.25 | [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $298.3 million for the first six months of 2025, contributing to a $64.8 million net decrease in cash Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $298,265 | $373,770 | | Net cash used in investing activities | $(322,078) | $(324,612) | | Net cash used in financing activities | $(40,983) | $(85,762) | | **Net decrease in cash and cash equivalents** | **$(64,796)** | **$(36,604)** | [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, derivative instruments, debt structure, and significant subsequent events like credit agreement amendments - The company utilizes various derivative instruments to hedge against commodity price volatility, with a fair value net asset of **$16.4 million** as of June 30, 2025[89](index=89&type=chunk)[94](index=94&type=chunk)[163](index=163&type=chunk) - As of June 30, 2025, the company had **$1.02 billion** outstanding under its Term Loan Credit Agreement and **$30.0 million** under its Senior Credit Facility Agreement[97](index=97&type=chunk) - Subsequent to quarter-end, the company amended its credit agreements, extending maturities to 2028, upsizing the term loan to **$1.2 billion**, and deferring amortization payments[140](index=140&type=chunk) - The company has a crude oil marketing contract with a remaining monetary commitment of approximately **$123.9 million** as of June 30, 2025[116](index=116&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, operational results, liquidity, and capital resources amid volatile market conditions [Overview and Recent Events](index=41&type=section&id=Overview%20and%20Recent%20Events) The company operates in the Midland Basin and recently amended its debt facilities to enhance liquidity and defer principal payments - As of June 30, 2025, the company's assets consisted of approximately **143,826 net acres** in the Midland Basin, with an average working interest of **93%**[145](index=145&type=chunk) - In August 2025, the company amended its credit agreements to extend maturities to 2028, upsize its Term Loan to **$1.2 billion**, and defer **$30.0 million** in quarterly amortization payments for one year[146](index=146&type=chunk) [Industry Considerations and Outlook](index=42&type=section&id=Industry%20Considerations%20and%20Outlook) The company anticipates continued price volatility due to market factors and maintains a flexible one to two drilling rig program - The market environment is influenced by OPEC's production decisions, US tariffs, and geopolitical instability, leading to **significant price volatility**[150](index=150&type=chunk)[152](index=152&type=chunk) - The company plans to average a **one to two (1-2) drilling rig program** for the remainder of 2025, maintaining flexibility in its capital plan[157](index=157&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Q2 2025 revenues decreased 27% year-over-year due to lower realized prices, despite flat sales volumes and reduced DD&A expenses Average Daily Sales Volumes | Product | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Crude Oil (Bbls) | 33,913 | 37,073 | (9)% | | NGL (Bbls) | 7,462 | 6,018 | 24% | | Natural Gas (Mcf) | 43,642 | 32,640 | 34% | | **Total (Boe)** | **48,649** | **48,531** | **0%** | Weighted Average Realized Prices (excluding derivatives) | Product | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Crude Oil per Bbl | $63.74 | $81.39 | (22)% | | NGL per Bbl | $20.34 | $20.32 | 0% | | Natural Gas per Mcf | $1.50 | $0.13 | 1,054% | | **Total per Boe** | **$45.27** | **$62.33** | **(27)%** | Key Operating Costs per Boe | Cost Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Production Costs (excl. workovers) | $6.55 | $6.79 | (4)% | | DD&A Expense | $22.87 | $28.91 | (21)% | | G&A Expense | $1.28 | $1.07 | 20% | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is sourced from operations and credit facilities, with a 2025 capital budget of $375-$405 million for drilling and completions - The 2025 capital budget is expected to be approximately **$375 to $405 million** for drilling and completion, plus additional funds for infrastructure[184](index=184&type=chunk) Cash Flow Summary - Six Months Ended June 30 (in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $298,265 | $373,770 | | Net cash used in investing activities | $(322,078) | $(324,612) | | Net cash used in financing activities | $(40,983) | $(85,762) | [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are commodity price and interest rate volatility, which are partially managed through derivatives - A **$1.00 per barrel change** in the weighted average crude oil price would have impacted annualized revenues by approximately **$14.0 million** for the six months ended June 30, 2025[203](index=203&type=chunk) - A **1% increase in interest rates** on outstanding debt would result in an annual increase in interest expense of approximately **$10.5 million**[211](index=211&type=chunk) - The company uses commodity derivative instruments to hedge price risk, as required by its credit agreements, to provide cash flow certainty[204](index=204&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The principal executive and financial officers concluded that the company's **disclosure controls and procedures were effective** as of the end of the period[212](index=212&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended June 30, 2025[213](index=213&type=chunk) [PART II. OTHER INFORMATION](index=62&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings that are not expected to have a material adverse financial impact - The company states that while it is party to various legal proceedings, it does not expect the outcomes to have a **material adverse effect** on its financial condition[215](index=215&type=chunk) [Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) Key risks include commodity price volatility, trade policy impacts, capital intensity, inflation, and geopolitical instability - Key risks include: - **Commodity Price Volatility:** Sustained price declines could adversely affect business and financial condition - **Tariffs and Trade Policy:** Trade restrictions could increase costs and disrupt the supply chain - **Capital Needs:** Development projects require substantial capital, and financing ability is uncertain - **Inflation and Costs:** Rising inflation may increase capital and operating costs, impacting profitability - **Geopolitical Risks:** Political instability in energy-producing regions can impact global supply and prices - **Strategic Alternatives Process:** The ongoing evaluation creates uncertainty and may not result in a transaction[217](index=217&type=chunk)[219](index=219&type=chunk)[224](index=224&type=chunk)[233](index=233&type=chunk)[237](index=237&type=chunk)[241](index=241&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No common stock was repurchased in Q2 2025, with $39.9 million remaining under the authorized repurchase program - The company **did not repurchase any of its common stock** during the three months ended June 30, 2025[246](index=246&type=chunk) - As of June 30, 2025, approximately **$39.9 million remained available** under the company's stock repurchase program, which expires on December 31, 2025[246](index=246&type=chunk)[248](index=248&type=chunk) [Other Information](index=70&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No director or officer of the Company adopted or terminated a **Rule 10b5-1 trading arrangement** during the quarter[249](index=249&type=chunk) [Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including debt agreements and required officer certifications

[HighPeak Energy, Inc. Second Quarter 2025 Financial and Operating Results](index=1&type=section&id=HighPeak%20Energy%2C%20Inc.%20Second%20Quarter%202025%20Financial%20and%20Operating%20Results) [Highlights and Recent Events](index=1&type=section&id=Highlights%20and%20Recent%20Events) The company reported stable Q2 2025 sales volumes and net income while amending its credit facilities to extend maturity and increase borrowing capacity Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | Average Sales Volumes | 48.6 MBoe/d | | Net Income | $26.2 million | | Diluted EPS | $0.19 | | EBITDAX | $156.0 million | | Lease Operating Expenses (ex. workover) | $6.55 per Boe | | Quarterly Dividend | $0.04 per share | - On August 4, 2025, the Company materially amended its Term Loan and Senior Credit Facility (Super Priority RCF) with key changes including **extended maturity to September 2028**, an **upsized Term Loan to $1.2 billion**, and deferred mandatory amortization payments until September 30, 2026[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) The amended Term Loan and proactive hedging strategy provide significant financial flexibility to capitalize on future opportunities, particularly with anticipated lower interest rates - The amendment and extension of the term loan is a strategic initiative that **increases capital structure flexibility**, enhances liquidity, and minimizes refinancing costs[4](index=4&type=chunk)[5](index=5&type=chunk) - The floating interest rate structure of the term loan is preferred over a high-yield, fixed-rate bond, as it allows the company to **benefit from projected lower interest rates**[5](index=5&type=chunk) - A significant portion of production has been hedged for the next 18 months to **minimize downside risk** from potential commodity price declines[5](index=5&type=chunk) [Operational and Financial Performance](index=3&type=section&id=Operational%20and%20Financial%20Performance) The company maintained production at 48.6 MBoe/d while reducing capital expenditures by over 30% quarter-over-quarter to $125.4 million [Operational Update](index=3&type=section&id=Operational%20Update) - Q2 2025 sales volumes averaged **48.6 MBoe/d**, composed of approximately 70% crude oil and 85% total liquids[7](index=7&type=chunk) - During the quarter, the company operated with an average of one drilling rig and one frac crew, drilling 13 gross wells and **turning 14 gross wells to production**[8](index=8&type=chunk) - As of June 30, 2025, there were **20 gross horizontal wells** in various stages of drilling and completion[8](index=8&type=chunk) [Financial Results](index=3&type=section&id=Financial%20Results) Q2 2025 Financial Summary | Metric | Value | | :--- | :--- | | Net Income | $26.2 million | | Diluted EPS | $0.19 | | EBITDAX | $156.0 million | | Diluted EBITDAX per share | $1.12 | Q2 2025 Average Realized Prices | Product | Price (Excluding Derivatives) | Price (Including Derivatives) | | :--- | :--- | :--- | | Crude Oil | $63.74 / Bbl | $65.27 / Bbl | | NGL | $20.34 / Bbl | $20.34 / Bbl | | Natural Gas | $1.50 / Mcf | $2.18 / Mcf | | **Overall** | **$45.27 / Boe** | **$46.94 / Boe** | - Total capital expenditures for Q2 2025 were **$125.4 million**, a decrease of over 30% compared to Q1 2025[11](index=11&type=chunk) - Cash costs for the quarter were **$11.69 per Boe**, leading to an unhedged EBITDAX margin of $33.58 per Boe[10](index=10&type=chunk) [Hedging Strategy](index=3&type=section&id=Hedging%20Strategy) HighPeak has entered into additional derivative contracts to hedge a significant portion of its forecasted production through early 2027 [Crude Oil Hedges](index=4&type=section&id=Crude%20Oil%20Hedges) - The company has outstanding crude oil derivative instruments, including swaps, collars, and puts, **extending through March 2027** to mitigate price volatility[12](index=12&type=chunk)[13](index=13&type=chunk) [Natural Gas Hedges](index=4&type=section&id=Natural%20Gas%20Hedges) - HighPeak has natural gas swap contracts in place for **30,000 MMBtu per day through 2026** and a reduced amount for Q1 2027, with weighted average prices ranging from $4.30 to $4.43 per MMBtu[14](index=14&type=chunk)[15](index=15&type=chunk) [Shareholder Returns and Corporate Information](index=5&type=section&id=Shareholder%20Returns%20and%20Corporate%20Information) The company declared a quarterly dividend of $0.04 per share, and outstanding warrants are set to expire on August 21, 2025 - The Board of Directors declared a quarterly dividend of **$0.04 per share**, payable on September 25, 2025, to stockholders of record on September 2, 2025[16](index=16&type=chunk) - The company's outstanding warrants (NASDAQ: HPKEW), which allow holders to purchase common stock at $11.50 per share, are set to **expire on August 21, 2025**[17](index=17&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) Unaudited financials show total assets of $3.09 billion, with net income of $62.5 million and operating cash flow of $298.3 million for the first half of 2025 [Unaudited Condensed Consolidated Balance Sheet](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheet) Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $21,853 | $86,649 | | Total assets | $3,089,453 | $3,063,288 | | Long-term debt, net | $1,027,354 | $928,384 | | Total stockholders' equity | $1,654,086 | $1,602,456 | [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total operating revenues | $200,400 | $275,266 | | Income from operations | $43,444 | $87,260 | | Net income | $26,176 | $29,717 | | Diluted EPS | $0.19 | $0.21 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $298,265 | $373,770 | | Net cash used in investing activities | ($322,078) | ($324,612) | | Net cash used in financing activities | ($40,983) | ($85,762) | | **Net decrease in cash** | **($64,796)** | **($36,604)** | [Unaudited Summary Operating Highlights](index=11&type=section&id=Unaudited%20Summary%20Operating%20Highlights) - Average daily sales volumes in Q2 2025 were **48,649 Boe**, nearly flat compared to 48,531 Boe in Q2 2024[33](index=33&type=chunk) - The average realized price per Boe, excluding derivatives, **decreased to $45.27** in Q2 2025 from $62.33 in Q2 2024, primarily due to lower crude oil prices[33](index=33&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=12&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) The company reported Q2 2025 EBITDAX of $156.0 million, negative free cash flow of $42.7 million, and adjusted net income of $13.9 million [Reconciliation of Net Income to EBITDAX and Discretionary Cash Flow](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDAX%20and%20Discretionary%20Cash%20Flow) EBITDAX Reconciliation for Q2 (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income | $26,176 | $29,717 | | EBITDAX | $156,024 | $215,829 | [Reconciliation of Net Cash Provided by Operations and Free Cash Flow](index=12&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operations%20and%20Free%20Cash%20Flow) Free Cash Flow Reconciliation for Q2 (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $141,213 | $202,331 | | Additions to crude oil and natural gas properties | ($126,338) | ($164,199) | | Free cash flow | ($42,677) | $6,447 | [Reconciliation of Net Income to Adjusted Net Income](index=13&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Adjusted Net Income Reconciliation for Q2 2025 (in thousands) | Metric | Amount | Per Diluted Share | | :--- | :--- | :--- | | Net income | $26,176 | $0.19 | | Noncash derivative gain, net | ($19,034) | ($0.14) | | **Adjusted net income** | **$13,851** | **$0.10** |

Core Insights - HighPeak Energy, Inc. reported its financial and operational results for the second quarter of 2025, highlighting a net income of $26.2 million and EBITDAX of $156.0 million, reflecting a stable performance despite a challenging market environment [1][9]. Financial Performance - The company achieved net income of $26.2 million, or $0.19 per diluted share, for the second quarter of 2025, compared to $29.7 million in the same period last year [9][38]. - EBITDAX for the quarter was $156.0 million, or $1.12 per diluted share, down from $215.8 million year-over-year [9][40]. - Total operating revenues were $200.4 million, a decrease from $275.3 million in the prior year [32]. - Average realized prices were $63.74 per barrel of crude oil, $20.34 per barrel of NGL, and $1.50 per Mcf of natural gas, leading to an overall realized price of $45.27 per Boe [10][35]. Operational Highlights - Average sales volumes for the second quarter were 48.6 MBoe/d, remaining flat compared to the same period last year [6][35]. - The company operated one drilling rig and one frac crew, drilling 13 gross horizontal wells and turning in line 14 gross producing wells [7][8]. - Capital expenditures for the quarter totaled $125.4 million, a reduction of over 30% compared to the first quarter of 2025 [11]. Debt and Liquidity Management - HighPeak amended and extended its Term Loan and Senior Credit Facility, increasing borrowings to $1.2 billion and extending maturity dates to September 2028 [5][8]. - The amendment allows for deferred mandatory amortization payments of $30 million per quarter until September 2026, enhancing liquidity and flexibility [5][8]. - The company has hedged a significant portion of its production for the next 18 months to mitigate downside risk from potential commodity price declines [5][12]. Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.04 per share, amounting to approximately $5.0 million, payable in September 2025 [16].

FORT WORTH, Texas, Aug. 04, 2025 (GLOBE NEWSWIRE) -- HighPeak Energy, Inc. ("HighPeak" or the "Company") (NASDAQ: HPK) today announced amendments to its Term Loan Credit Agreement and Senior Credit Facility Agreement, both effective August 1, 2025. Material Amendments to the Term Loan Credit Agreement and Senior Credit Facility Agreement Hedging Update In conjunction with the aforementioned amendments, the Company entered into additional crude oil derivative contracts through March 31, 2027. | | | | | | | | ...